Trinidad Drilling announces expanded operations for its international joint venture, four new rigs and provides 2014 capital

 Trinidad Drilling announces expanded operations for its international joint  venture, four new rigs and provides 2014 capital program  /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION  IN THE UNITED STATES./  TSX SYMBOL:  TDG  CALGARY, Feb. 13, 2014 /CNW/ - Trinidad Drilling Ltd. (Trinidad or "the  Company") today announced that it has agreed to expand its joint venture  international operations into a second country. It also announced an expected  capital expenditure budget for 2014 of approximately $315 million, including  four new high performance, AC, walking rigs for operation in Mexico through  its joint venture.  The capital program will include capital projects carried over from 2013,  upgrades to existing equipment, new builds in Canada, Mexico and Saudi Arabia  and maintenance capital.  "Trinidad is in the fortunate position of having a large basket of  opportunities to select from," said Lyle Whitmarsh, Trinidad's Chief Executive  Officer. "Our international joint venture with Halliburton Company is  progressing well and is expanding into new areas of operation. Our existing  relationships with key players in the LNG market position us well to add to  our current LNG-related growth and our existing fleet provides us with  opportunities to upgrade and improve the already high performance level of our  fleet. We are very selective in which opportunities we choose. By maintaining  a balance between upgrading existing equipment and building new rigs in 2014,  we are able to demonstrate growth, while also focusing on existing customers  and maintaining market share."  Trinidad will be working on six new rigs in 2014, one for its Canadian  operations and five that will be operating through its joint venture in Saudi  Arabia and Mexico. The Canadian rig will be operating under a five-year  contract in northern Canada drilling wells related to a proposed LNG plant on  the British Columbia coast. Once completed, this rig will be one of the  largest, most technically-advanced rigs operating in Canada. As previously  announced, Trinidad has agreed to move four rigs into the joint venture to  work in Saudi Arabia, including one new build and three upgraded rigs from its  US fleet. These rigs will be under three-year contracts with an optional one  year extension. In addition, Trinidad has recently agreed to build four new  rigs for operation in Mexico through its joint venture. These rigs will be  3,000 horsepower rigs operating under three-year, take-or-pay contracts with  an optional one year extension. The design and construction of the new rigs  will be managed by Trinidad's in-house manufacturing division, Trinidad Design  and Manufacturing, and will take place in Nisku and Houston, with some final  completion in the Middle East. The rigs destined for Canada and Saudi Arabia  are expected to be in operation in the second half of 2014, while the Mexican  rigs are expected to be complete in late 2014/early 2015.  Trinidad has made a reputation for itself as a high performance driller with  well-trained crews and modern, efficient equipment. Customers' demands have  been changing over the past few years. As they drill deeper and longer-reach  horizontal wells, the demand for larger equipment with increased mud handling  and higher pressure capacity has grown. Customers have also increasingly  recognized the efficiency gains from pad drilling using an automated rig  moving system over the past few years. Trinidad is committed to providing high  quality equipment to meet its customers' needs and has reviewed its existing  fleet to identify rigs that would benefit from upgrades to meet this changing  demand.  Trinidad has selected approximately 30 rigs that are candidates for upgrades  in 2014. The upgrades on these rigs include improvements that increase the  efficiency and performance of the rigs such as adding moving systems and top  drives, changing to AC drawworks and upgrading pumping capacity. These changes  increase the marketability of the equipment and in a lot of cases come with  increased dayrates and extended contract terms. In addition, Trinidad plans to  move the three rigs currently idle in Mexico to its Canadian or US operations  and upgrade them. The number of rigs upgraded in 2014 may vary and will depend  on industry conditions, relocation opportunities through the joint venture and  customer demand.  In addition to new builds and upgrades, Trinidad expects to spend  approximately $40 million on maintenance capital, capital inventory and  infrastructure. This includes recertification of rigs and capital items that  need to be replaced or added over time such as drill pipe, vehicles, shop and  yard facilities and spare equipment.  The 2014 capital budget is expected to be split as follows:        New builds and JV related(1)             $ 135 million     Capital upgrades and enhancements        $ 140 million     Maintenance and infrastructure capital   $   40 million     Total estimated 2014 capital             $ 315 million  (1)     This figure is net of the 40% of the value of the rigs Trinidad  receives when it transfers rigs into the joint venture.  The budget is based on current market conditions and remains very flexible.  The timing of spending, rigs selected or upgrade type selected may change  depending on customer demands and other industry conditions.  Trinidad is a corporation focused on sustainable growth that trades on the  Toronto Stock Exchange (TSX) under the symbol TDG. Trinidad's divisions  operate in the drilling and barge-drilling sectors of the North American oil  and natural gas industry with operations in Canada, the United States and  Mexico. In addition, through a joint venture, Trinidad has the opportunity to  operate drilling rigs in other international markets such as Saudi Arabia and  Mexico. Trinidad is focused on providing modern, reliable, expertly designed  equipment operated by well-trained and experienced personnel. Trinidad's  drilling fleet is one of the most adaptable, technologically advanced and  competitive in the industry.  FORWARD-LOOKING INFORMATION  This press release contains forward-looking statements and forward-looking  information (collectively, "forward-looking information") within the meaning  of applicable Canadian securities laws.  The use of any of the words "expect",  "anticipate", "will", "future" and similar expressions are intended to  identify forward-looking information.  In particular, this press release  contains forward-looking information pertaining to Trinidad's plans,  strategies, objectives, expectations and intentions including, without  limitation: the manufacturing and upgrading of drilling rigs; the timing of  the delivery of the rigs into operation; Trinidad's and the joint venture's  growth opportunities; Trinidad's 2014 capital expenditure program; Trinidad's  expectation that it will fund the building and upgrading of rigs through cash  flow from operations; and the potential success of the joint venture and  Trinidad's ability to enter new international markets.  The forward-looking information included in this press release reflects  several factors, expectations and assumptions including, without limitation:  oil and gas industry conditions and oil and gas production levels; commodity  prices; supply and demand for commodities; scheduling and timing of certain  projects and Trinidad's and the joint venture's strategy for growth; capital  expenditure programs and other expenditures by oil and gas exploration and  production companies; Trinidad's and the joint venture's future operating and  financial results; that Trinidad will continue to conduct its operations,  including with respect to rig design and manufacturing, in a manner consistent  with its past performance.  The forward-looking information included in this press release is not a  guarantee of future performance and should not be unduly relied upon.   Forward-looking information is based on current expectations, estimates and  projections that involve a number of risks and uncertainties, which could  cause actual results to differ materially from those anticipated and described  in the forward-looking information including, without limitation: volatility  in market prices for oil, natural gas and LNG; liabilities inherent in the  drilling and manufacturing industries, including technical problems;  competition for skilled personnel; changes in general economic, market and  business conditions; actions by governmental or regulatory authorities  including changes to tax or environmental laws; the ability of Trinidad's  customers to raise capital and to continue with their drilling programs;  increases and overruns in construction costs; supply and demand for  commodities; and the risks inherent in Trinidad's ability to generate  sufficient cash flow from operations to meet its current and future  obligations. Should any one of a number of issues arise, Trinidad may find it  necessary to alter its current business strategy and/or capital expenditure  program. Additional risks that could impact the business and operations of  Trinidad are detailed under the heading "Risk Factors" in Trinidad's annual  information form for the year ended December 31, 2012. Trinidad cautions that  the foregoing list of risks and uncertainties is not exhaustive.  The  forward-looking information contained in this press release speaks only as of  the date of this press release and Trinidad assumes no obligation to publicly  update or revise such forward-looking information to reflect new events or  circumstances, except as may be required pursuant to applicable securities  laws.  This news release shall not constitute an offer to sell or the solicitation of  an offer to buy the shares in any jurisdiction.  The shares offered will not  be and have not been registered under the United States Securities Act of 1933  and may not be offered or sold in the United States or to a United States  person, absent registration, or an applicable exemption therefrom.    SOURCE  Trinidad Drilling Ltd.  Lyle Whitmarsh Chief Executive Officer  Brent Conway President  Lisa Ottmann Vice President, Investor Relations (403) 294-4401  lottmann@trinidaddrilling.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/February2014/13/c9414.html  CO: Trinidad Drilling Ltd. ST: Alberta NI: OIL VNT